Xbox Cancels Avowed Sequel for New Fallout Game

Xbox is pushing for a new 'Fallout' game from Obsidian Entertainment, but at the cost of canceling the sequel to 'Avowed', according to a report from Bloomberg.

The move is part of Xbox's broader restructuring effort, which has resulted in widespread layoffs and studio closures this week. Microsoft's goal is to concentrate investment around its biggest tentpole franchises, including 'Fallout' alongside properties like 'Halo', 'Gears of War', and 'The Elder Scrolls'.

Bethesda Game Studios is collaborating with Obsidian on the new game, marking an unusual pairing between two studios that have historically operated separately within the Xbox umbrella. The 'Fallout' franchise has gone nearly eight years without a mainline release since 'Fallout 76' launched in 2018.

'Fallout: New Vegas' director Josh Sawyer is attached to this new game, which is seen as an opportunity for Microsoft to tap into the nostalgia of fans who have been waiting for a new entry in the series. However, the cancellation of 'Avowed's sequel has left fans disappointed and wondering what could have been.